Expatriate US citizens and green card holders get entangled in complex tax situation each year, when filing their foreign and domestic tax return. In difference to most countries, the United States taxes per citizenship rather than residence. This means that, if you are an American working in the UK full year round, you would still have tax liabilities in the US an will be required to file a tax return each year.
US income tax is due on any foreign income above $85,700 per year, unless already taxed at equal or higher rate. If no tax was paid, income above that threshold is subject to the same tax rates as if the person was living in the US.
Double taxation is certainly not a great experience for US expats, especially at times of recession. After extensive research and planning, Taxback.com has officially launched a dedicated US Expatriate Tax Return Service to help minimize cross-border tax liability.